India’s Advanced Chemistry Cell (ACC) battery demand is projected to witness robust growth over the next five years, expanding at a compound annual growth rate (CAGR) of 39% between 2025 and 2030, according to a recent report by Nuvama. The rapid increase is being driven by accelerating electric vehicle (EV) adoption, expanding battery energy storage systems (BESS), and supportive government policies aimed at strengthening domestic battery manufacturing.
The report estimates that India’s ACC demand will rise from nearly 40 GWh in 2025 to around 700 GWh by 2030. Advanced Chemistry Cells include next-generation rechargeable battery technologies such as lithium-ion (LFP, NMC, LMFP and NCA), sodium-ion, solid-state batteries and other advanced chemistries. Lithium-ion batteries currently account for more than 95% of global ACC demand and are expected to remain the dominant technology in the near future.
Nuvama also highlighted strong momentum in India’s EV battery market, forecasting battery demand from electric vehicles to grow at a CAGR of approximately 35% during 2025-2030. Meanwhile, the battery energy storage system (BESS) segment is expected to record the fastest expansion, with demand increasing at an estimated 78% CAGR over the same period as renewable energy deployment accelerates across the country.
The brokerage noted that India is steadily transitioning from dependence on imported battery materials towards building a domestic battery chemicals ecosystem. Government initiatives, including the ₹18,100 crore Production Linked Incentive (PLI) scheme, are encouraging local manufacturing capacity and helping create an integrated battery value chain to support future demand.
On the global front, ACC demand is expected to grow at around 20% CAGR between 2025 and 2030 before moderating in the following five years. Nuvama believes global demand growth will gradually outpace supply growth, leading to improved manufacturing utilisation rates as excess production capacity is absorbed across international markets.
With electric mobility, renewable energy integration and grid-scale storage becoming national priorities, India is positioning itself as a major player in the global battery ecosystem. Continued investments in cell manufacturing, battery materials and supporting infrastructure are expected to strengthen supply chains, reduce import dependence and accelerate the country’s clean energy transition over the coming decade.
